Agglomeration economies in European and American cities
We consider two types of cities. In the European one the amenities are located at the city-center (like e.g. Paris or London) whereas in the American-type city the amenties are at the city-edge (like e.g. Detroit, Los Angeles). We first show that the unemployed reside at the vicinity of the city-center in the American-type city while they locate at the outskirts of the city in the European one. We then establish conditions for the endogeneous formation of monocentric European and American cities and compare them. It turns out that the employed workers are better off in European cities whereas the unemployed and firms are worse off, that land rent is cheaper in American cities and that the number of trips devoted to amenities and to work affect differently workers' utilities and firms' profits in the two cities.
|Date of creation:||01 Jan 1999|
|Date of revision:|
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- Fujita,Masahisa, 1991.
"Urban Economic Theory,"
Cambridge University Press, number 9780521396455, December.
- Fujita, Masahisa & Thisse, Jacques-Francois, 1996.
"Economics of Agglomeration,"
Journal of the Japanese and International Economies,
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- Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, December.
- Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521171960, December.
- Fujita, M. & Thisse, J.-F., . "Economics of agglomeration," CORE Discussion Papers RP 1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fujita, Masahisa & Thisse, Jacques-François, 1996. "Economics of Agglomeration," CEPR Discussion Papers 1344, C.E.P.R. Discussion Papers.
- Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, vol. 67(4), pages 620-31, September.
- Hochman, Oded & Ofek, Haim, 1977. "The Value of Time in Consumption and Residential Location in an Urban Setting," American Economic Review, American Economic Association, vol. 67(5), pages 996-1003, December.
- repec:cor:louvrp:-1370 is not listed on IDEAS
- Daniel Cohen & Arnaud Lefranc & Gilles Saint-Paul, 1997. "French unemployment: a transatlantic perspective," Economic Policy, CEPR;CES;MSH, vol. 12(25), pages 265-292, October.
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